Executive Summary:
This document outlines the schemes implemented by the Government of India to promote MSMEs in the aspirational district of Chandauli. It details financial assistance provided under programs like PMEGP, CGTMSE, MSECDP, KVY and GVY. The report also addresses support for traditional industries and the establishment of district-level export hubs. Data is provided up to 22.07.2025 for certain schemes.
Key Points / Main Content:
* **Prime Minister's Employment Generation Programme (PMEGP):**
* Aims to assist entrepreneurs in setting up new microenterprises in the non-farm sector.
* Provides employment opportunities to traditional artisans and unemployed youth.
* Beneficiaries in aspirational districts, including Chandauli, receive higher subsidy rates (25-35%) and have a lower own contribution requirement (5%).
* From FY 2022-23 to 22.07.2025, PMEGP assisted 326 units in Chandauli, disbursing ₹1827.64 Lakh in Margin Money subsidy.
* **Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE):**
* Provides credit guarantees up to ₹10 crore for loans to MSEs without collateral.
* MSEs in aspirational districts, including Chandauli, receive 85% guarantee coverage (compared to 75% for general cases) and a 10% concession in guarantee fees.
* Up to 30.06.2025, 16,464 guarantees were approved in Chandauli district, amounting to ₹713 Crore.
* **Micro and Small Enterprises Cluster Development Programme (MSECDP):**
* A central sector scheme that enhances the productivity and competitiveness of MSEs.
* Provides financial assistance for establishing Common Facility Centers (CFCs) in existing clusters.
* One approved and ongoing project exists in the Rice Mill Cluster in Chandauli, with a GoI grant of ₹1200.00 lakh out of a total project cost of ₹1500.00 lakh.
* **Khadi Vikas Yojana (KVY):**
* A sub-scheme for promoting and developing Khadi.
* Eight Khadi Institutions are registered and implementing Khadi activities in Chandauli district.
* **Gramodyog Vikas Yojana (GVY):**
* A scheme for promoting and developing village industries through various support measures.
* 70 beneficiaries have benefitted under GVY during the last three years in the Chandauli district.
* **Support for Traditional Industries:**
* Handloom (21) and Handicraft (17) industries in Chandauli have received financial assistance under PMEGP, with ₹104.47 lakh and ₹138.75 lakh disbursed, respectively, from FY 2022-23 to 22.07.2025.
* Entrepreneurship Development Programme (EDP) training has been provided to 449 individuals in Chandauli from FY 2022-23 to 22.07.2025.
* **District Export Hub:**
* Under the Districts as Export Hubs (DEH) initiative, Chandauli has been identified for promoting exports of plastic products, Zari Zardozi, and fruits.
Impact Analysis:
* **MSMEs in Chandauli:**
* *Impact:* Benefit from financial assistance, training, and improved market access, leading to enhanced productivity and competitiveness.
* *Action Required:* Apply for relevant schemes, participate in training programs, and leverage the district export hub for market opportunities.
* **Entrepreneurs in Chandauli:**
* *Impact:* Receive support to establish new microenterprises and generate employment.
* *Action Required:* Utilize PMEGP for financial assistance and EDP training to improve business management skills.
* **Traditional Artisans and Unemployed Youth:**
* *Impact:* Gain employment opportunities and financial support to sustain traditional industries.
* *Action Required:* Engage with Khadi Institutions, participate in relevant training, and apply for assistance under PMEGP.
* **Lending Institutions (MLIs):**
* *Impact:* Provided with credit guarantees for loans to MSEs, reducing the risk of lending.
* *Action Required:* Utilize CGTMSE to extend credit to MSEs without requiring collateral security.
Key Entities Referenced
Prime Minister's Employment Generation Programme (PMEGP): A scheme that assists entrepreneurs in setting up new microenterprises in the non-farm sector, aiming to provide employment opportunities to traditional artisans, rural and urban unemployed youth.
Chandauli district, Uttar Pradesh: An aspirational district where various schemes are implemented to promote MSME units and traditional industries.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): A trust providing credit guarantees for loans extended to Micro and Small Enterprises (MSEs) by Member Lending Institutions (MLIs), without requiring collateral security.
Micro and Small Enterprises Cluster Development Programme (MSECDP): A central sector scheme for the development of clusters, enhancing the productivity and competitiveness of micro and small enterprises (MSEs) by extending financial assistance for establishing Common Facility Centers (CFCs).
Khadi Vikas Yojana (KVY): A sub-scheme of Khadi Gramodyog Vikas Yojana for the promotion and development of Khadi.
Gramodyog Vikas Yojana (GVY): A scheme for promotion and development of village industries through common facilities, technological modernization and training.
Districts as Export Hubs (DEH): An initiative of Directorate General of Foreign Trade (DGFT) to promote exports from districts nationwide by identifying export potential products and services.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Micro, Small and Medium Enterprises.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 880
TO BE ANSWERED ON 24.07.2025
PROMOTION OF TRADITIONAL INDUSTRIES
880. SHRI VIRENDRA SINGH:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the details of schemes that have been implemented so far to promote MSME units in the
aspirational district of Chandauli and the outcomes achieved thereunder;
(b) the number of persons who have been provided financial assistance under the Prime
Minister’s Employment Generation Programme (PMEGP) in Chandauli district and the number of
units that are operating successfully;
(c) whether the traditional industries such as cottage industries, handlooms, handicrafts, etc., in
Chandauli district have not been provided with adequate funds and training, if so, the details thereof
and the corrective steps taken in this regard; and
(d) whether the Government has established a district-level hub in the aspirational district of
Chandauli, if not, the reasons therefor and the timeline proposed for the same?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): Government implements various Central Sector and demand driven schemes/
programmes for MSMEs in the country including aspirational district of Chandauli. Details of the
schemes/programmes i.e. Prime Minister's Employment Generation Programme (PMEGP), Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises -
Cluster Development Programme (MSE-CDP), Khadi Vikas Yojana, Gramodyog Vikas Yojana are
provided as under:
(i) Prime Minister’s Employment Generation Programme (PMEGP): The Scheme assists
entrepreneurs in setting up of new micro-enterprises in the non-farm sector. It aims to provide
employment opportunities to traditional artisans/ rural and urban unemployed youth.
Beneficiaries belonging to Aspirational Districts, including aspirational district of Chandauli,
are included in the Special category of PMEGP and eligible for higher rate of subsidy and
lower rate of own contribution. Beneficiaries under Special category are provided with higher
subsidy of 25% and 35% of the project cost in urban and rural areas respectively as compared
to 15% and 25% of the project cost for General Category beneficiaries. Contribution of
beneficiaries under Special Category is 05% as compared to 10% for General Category
beneficiaries.
Number of units assisted, Margin Money subsidy disbursed and estimated employment
generated in aspirational district of Chandauli under PMEGP for the period from FY 2022-23
to FY 2025-26 (upto 22.07.2025) is given below:: 2 :
Margin Money Subsidy
Financial Year No. of Units Assisted
(Rs. Lakh)
2022-23 162 786.12
2023-24 90 598.99
2024-25 50 323.19
2025-26
24 119.34
(up to 22.07.2025)
(ii) Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of Micro, Small and
Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly
instituted Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) in the
year 2000, to provide credit guarantees for loans upto Rs. 10 crore, extended by Member
Lending Institutions (MLIs) to Micro and Small Enterprises (MSEs), without requiring
collateral security or third-party guarantees.
Special provisions under the Scheme for MSEs situated in Aspirational Districts, including
Chandauli district are given as follows:
i. The extent of guarantee coverage is 85% viz-a-viz 75% for general.
ii. Concession in guarantee fee by 10% to MSEs situated in Aspirational Districts
The detail of guarantees approved under CGS in the Chandauli District is given below:
No. of Guarantees Approved Amount Approved
(upto 30.06.2025) (in Rs. Crore)
16,464 713
(iii) Micro and Small Enterprises Cluster Development Programme (MSE-CDP): MSE-CDP is a
central sector scheme for development of clusters. It enhances the productivity and
competitiveness of micro and small enterprises (MSEs) by extending financial assistance as
Government of India (GoI) grant for establishment of Common Facility Centers (CFCs) in the
existing clusters. There is one approved project in Chandauli district of Uttar Pradesh under
MSE-CDP which is ongoing. The details of the same are given below:
Common Facility Centre (CFC):
Name of the Cluster Date of Project Cost GoI grant
approval (Rs. in lakh) Approved
(Rs. in lakh)
CFC in Rice Mill Cluster, 07.12.2021 1500.00 1200.00
Chandauli
iv) Khadi Vikas Yojana (KVY): KVY is a sub-scheme of Khadi Gramodyog Vikas Yojana for the
promotion and development of Khadi. Under KVY, 08 Khadi Institutions are registered and
implementing Khadi activities and providing employment to the Khadi artisans in Chandauli
district.: 3 :
v) Gramodyog Vikas Yojana (GVY): GVY is a scheme for promotion and development of
village industries through common facilities, technological modernization, training etc. &
other support and services for promotion of village Industries. GVY has various
components/verticals from the activities under Village Industries: Agro Based & Food
Processing Industry (ABFPI), Mineral Based Industry (MBI), Wellness & Cosmetics Industry
(WCI), Handmade Paper, Leather & Plastic Industry (HPLPI), Rural Engineering & New
Technology Industry (RENTI), and Service Industry. 70 beneficiaries have benefitted under
GVY during the last three years in the Chandauli district.
(c): In Chandauli district, traditional industries such as handlooms and handicrafts have been
provided with financial assistance in the form of Margin Money (MM) subsidy under PMEGP. +
In Chandauli district, 21 number of handloom industries and 17 number of handicraft
industries have been assisted with MM subsidy disbursement of Rs. 104.47 lakh and Rs. 138.75 lakh
respectively since FY 2022-23 to FY 2025-26 (upto 22.07.2025).
Under PMEGP, Entrepreneurship Development Programme (EDP) training is provided to
potential beneficiaries with the objective to provide orientation and awareness pertaining to various
managerial and operational functions such as finance, production, marketing, enterprise management,
banking formalities, book-keeping, statutory compliances etc. to run their business effectively.
In Chandauli district, 449 number of EDP have undergone since FY 2022-23 to FY 2025-26
(upto 22.07.2025).
(d): Under the Districts as Export Hubs (DEH) initiative of Directorate General of Foreign Trade
(DGFT), Government has taken measures to promote exports from districts nationwide. Export
potential products and services have been identified in 734 districts, covering key sectors such as
agriculture, toys, and Geographical Indications (GI) products. In the DEH established in Chandauli
district, the products identified are Plastic products, Zari Zardozi, and Fruits.
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